Big Interview: Accelya on the 'when and how' of NDC

Ex-United Airlines director, Tye Radcliffe is now chief customer success officer at Accelya. He details the prevalence of NDC

Q: Why has NDC been such a divisive topic in the travel industry, and what factors have contributed to the slow adoption rate?  

A: New Distribution Capability (NDC) has been divisive in the travel industry because unfortunately in its early days it was conflated with distribution cost recovery efforts (such as GDS surcharges). Many entities in the industry also felt threatened by the potential changes NDC enables to commercial models, business models and processes. Further, NDC opens up the opportunity for small, nimble tech players in the industry to make a big impact, which threatens legacy providers. NDC represents a fundamental shift in how airline content is distributed and transformational change often sparks debate. NDC is no exception. While many see it as a leap toward modern airline retailing, others view it as disruptive to the established systems and processes they’ve relied on for decades. This tension has been particularly evident in the differing perspectives between airlines, travel agencies, and corporate buyers.

Many airlines are still reliant on outdated infrastructure, which limits their ability to deliver the seamless and personalized retail experiences passengers now expect. However, leading airlines have embraced NDC as a cornerstone of their retailing strategies. With Accelya powering over 50% of global NDC transactions, we’ve seen firsthand how airlines can successfully use NDC to differentiate themselves in the marketplace.

The pace of adoption also varies widely across the industry. While some airlines have made significant investments and are fully leveraging NDC to enhance their distribution, others are still working to overcome challenges and align stakeholders. This uneven adoption creates inconsistencies in how NDC content is made available, adding to the complexity for travel sellers and corporate buyers. Despite these hurdles, the momentum is building, and the benefits of modern retailing are becoming increasingly clear. At Accelya, we’re committed to helping airlines navigate this transition and unlock the full potential of NDC.

Q: Where do you see NDC adoption rates with the airlines you work with?

A: NDC is well and truly here. Our friends at McKinsey describe NDC as a matter of "when and how" rather than "if," with their data showing improved retailing could deliver $45 billion to the airline industry by 2030. The shift to a world of offers and orders is inevitable, with the International Air Transport Association (IATA) targeting full adoption by 2030. Airlines recognize that modern retailing isn’t optional—it’s essential for meeting evolving traveler expectations.

Adoption rates among the airlines we work with are accelerating. On average, we see more than 30% adoption for our customers, with some reaching as high as 70%. These numbers are only increasing as airlines refine their distribution strategies to deliver more relevant services. This aligns perfectly with today’s traveler demands for tailored offers and seamless experiences.

Corporate travel has been a key driver of NDC growth, with bookings through our NDC platform surging 157% year-over-year. This growth stems from the expansion of NDC-enabled airlines in travel management company (TMC) offerings, increasing access to NDC content for corporate buyers, alongside organic growth in TMC usage fueled by a resurgence in business travel demand and a renewed focus on in-person meetings.

While Europe initially led the way in NDC adoption, with airlines like the Lufthansa Group pioneering NDC, with Finnair targeting 100% NDC-enabled content and Air France/KLM also showing a strong commitment to NDC, the U.S. has gained significant ground. Key moves by American Airlines in 2023, Delta’s commitment, and broader industry momentum—driven by innovations like Continuous Pricing and increased GDS engagement—have propelled the U.S. to the forefront of NDC progress

Q: How is Accelya addressing the concerns of travel agencies regarding NDC adoption?

A: The ecosystem for NDC is vibrant, and Accelya is at the heart of making it work for everyone involved. We have more than 50,000 active agencies in our network and are collaborating with Travel Management Companies (TMCs) and Online Travel Agencies (OTAs) to ensure NDC delivers real value for them. While some TMCs have chosen to take a cautious approach, others have embraced NDC, recognizing its potential to reshape distribution and retailing.

By delivering NDC-sourced content to their corporate customers, airlines are offering a more transparent shopping experience with more relevant and tailored offers. NDC makes it simpler, faster, and more contextually adaptable compared to the legacy EDIFACT world. The aim of NDC is to enable airlines to create richer, customer-centric offers more quickly and simply while maintaining their wide-ranging services in customers' channels of choice.

The success of NDC relies on seamless collaboration among airlines, partners, travel sellers, and corporate buyers. However, adoption has been hindered by a lack of unified understanding and awareness of its value proposition. To address these challenges, we have several targeted initiatives planned in the coming months to dispel misconceptions, foster alignment, and showcase the tangible benefits of NDC across the travel ecosystem.

Put simply, everyone in the industry can benefit from embracing this new form of distribution and retailing. We see travel sellers playing a huge role in this evolution and are proud of the active network we’ve built. At Accelya, we’re committed to ensuring that NDC adoption is as seamless and beneficial as possible for all stakeholders.

What innovations or developments in NDC technology do you foresee in the next five years, and how might these impact the consumers?

NDC is a building block of retail transformation. As the industry matures beyond NDC, we will see a shift towards a full modern retailing where airlines transition to a comprehensive Offer, Order, Settle & Deliver (OOSD) platform. This will see the entire retailing process unified from product creation to fulfillment.

Airlines will benefit from stronger operational efficiency and greater control over their distribution strategies. In turn, travelers will have even better experiences. Back-office processes will be streamlined, boosting customer satisfaction throughout their travel experience. Airlines, in part powered by more advanced technologies like Artificial Intelligence (AI) and predictive analytics, will be able to offer personalized and dynamic content across channels. This means travelers will have more consistent and relevant interactions tailored to their needs. 

How has Accelya positioned itself to challenge the traditional monopoly on airline retailing? What sets you apart from your competitors?

At Accelya we are a technology choice for the future and not the past. We are proud partners of Amazon Web Services and bring airlines many of the same retail tools that power Amazon.com. 

We are also open by nature, having been API-driven since 1998. This means modularity is in our DNA. We understand every journey to modern retailing is completely unique, so we don’t force airlines down a certain route or lock them in. Instead, we enable seamless integration with any existing tech stack and as such we have a long track record of interoperability with airlines’ systems. We also don’t have restrictive contracts or hidden fees – a common complaint we hear from airlines. 

Last but not least, we are backed by Vista Equity Partners as part of their long-term Perennial funds. That means we have access to active learnings from more than 80 world class enterprise software companies.

Q: How does Accelya support airlines’ differing approaches to NDC adoption? 

A: Ultimately, all airlines are on a journey to modernize distribution and what we mean by that is that they are really taking control of their own retailing capabilities to enhance profitability, customer experience and servicing benefits.Airlines want to control the offer and present the products the way they want to.We are deeply connected to the travel ecosystem, working hand in hand with partners to deliver the right outcomes. 

There is no one-size-fits-all approach to distribution. An airline’s size, target customer segments, region and business model all influence what distribution approaches make sense.We see many different approaches from airlines, all of which have gained high levels of adoption. 

We have identified some consistent themes and actions that successful airlines are employing, such as differentiated content, clear communication about their work and of course, incentives. Also critical across all of these points is organizational alignment with the common goal of enhancing travel retailing. We will support our airline customers, whatever their strategy - our ultimate goal is to ensure their success. 

Q: Looking ahead five years, what will the airline retailing and distribution landscape look like?

A: To remain relevant, airlines need to embrace modern retailing strategies. In the short term, NDC will continue to grow and scale. We will see further adoption globally with more and more airlines starting to bring modern retailing capabilities onboard to improve their customers’ experience and take control of their distribution strategies. 

Looking at the longer term, we expect to see the first major airline fully transition away from legacy Passenger Service Systems (PSS) in the next few years to modern OOSD platforms such as Accelya’s FLX ONE. We expect to see this as a step-by-step transition rather than a big bang, with airlines seeing value at every step of the journey. A platform like FLX ONE is critical for managing the entire lifecycle of an order—from creation to settlement—ensuring a seamless and efficient retailing process.

From our side, our goal is to continue building on the strong foundation we’ve created with FLX ONE NDC, offering airlines the tools they need to modernize and grow in an increasingly digital world. We’ll keep investing in areas like cloud-native technology, AI-driven insights, and data-driven personalization to ensure that our customers remain competitive and profitable.